Mon. Mar 30th, 2020

Visa acquires Plaid financial startup for $ 5.3 billion

The US multinational financial services Visa announced Monday that it signed an agreement to acquire the emerging online payment company Plaid, which has among its customers the popular application for mobile Venmo, for $ 5.3 billion.

Based in San Francisco (California, USA), Plaid is a provider of application programming interfaces (APIs) for digital payment systems, that is, they make possible transactions between the bank accounts of Internet users and Companies in which they want to buy.

“Plaid products allow consumers to conveniently share their financial information with thousands of applications such as Acorns, Betterment, Chime, Transferwise and Venmo,” both companies said in announcing the agreement.

In the case of Venmo, probably the best known Plaid client for the general public in the US, the API developed by Plaid is the one that connects the user’s bank account with their Venmo account, thus allowing simple and fast transactions such as payments or income.

The San Francisco firm was founded in 2013 and has since grown to serve twenty million people through its bank accounts and the various applications it has as clients.

According to a statement issued by the two companies, today one in four people with a bank account in the US He has used Plaid’s services at some point in his life.

“Plaid is a leader in the world of fast-growing financial technology, with capabilities and top-notch talent. This acquisition, combined with the many efforts we already have in the field of financial technology, will position us better to give value to developers, financial institutions and consumers, “said Visa CEO Al Kelly.

For his part, the co-founder and head of Plaid, Zach Perret, said that the union of the company he created and Visa, which has “the trust of billions of consumers, companies and financial institutions,” will allow them to respond ” to the rapid growth of digital financial services. “


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